TZ Limited signs ‘pivotal’ software deal with multi-billion dollar company Ricoh
As it continues to grow its bottom line, TZ Limited (ASX: TZL) has entered into a “pivotal” software-only deal with multi-billion dollar company Ricoh.
Under the agreement, Ricoh will use TZ’s cloud offering, which is expected to have a total contract value of $950,000 over a three-year term.
TZ CEO Mario Vecchio said the deal with Ricoh was a “pivotal moment” for the company, as it marks TZ’s first software-only contract.
“This is the first commercial success of a strategy developed last year to generate revenue separate from the software platform alone,” Vecchio explained.
“We have invested and focused on building our strong software foundation, and this $950,000 deal reflects those capabilities.”
Payment will be made in three installments, with the first $250,000 due now and the remainder by mid-2023.
TZ says the deal demonstrates its capabilities as the “world’s leading software provider in the smart locker market” and its “rapidly growing Edge Logistics field”.
A global entity, Ricoh generated $18.5 billion in revenue in the last fiscal year.
TZ software platform
TZ has developed smart access control software, specializing in smart lock systems.
“This transaction demonstrates to customers the ability to work with third-party electronic locking hardware and locker systems – at scale,” Mr. Vecchio said.
During the June quarter, TZ recorded net cash from operating activities of $700,000, up from a loss of $1.2 million in the prior corresponding period.
Group revenue for the quarter was $8 million, bringing year-to-date revenue to $21.2 million.
According to TZ, this represents a 78% increase in revenue from the June quarter of last year.
TZ noted that it closed the June period with $4 million in backorders, which are expected to be delivered in the current September quarter.
The company expects the end of fiscal year 2022 to continue through fiscal year 2023.